As live events boom, India’s hotels see new engine of growth

International music concerts and marquee sporting events are emerging as a major growth driver for India’s hotel industry, as younger consumers increasingly prioritise live experiences over big-ticket shopping, according to hotel executives.

From pop star Dua Lipa to rapper Ye, global artists are adding India to their tour calendars, helping fill hotel rooms at a time when corporate travel demand from IT services companies is showing signs of cooling amid tighter spending, at least three executives said.

“We are now in the economy of experiences,” Alan Watts, president of Hilton’s Asia-Pacific business, told Reuters.

The impact is already visible in host cities.

A concert by British rock band Coldplay in Ahmedabad last year drew tens of thousands of fans, making the day of the show the city’s busiest for metro traffic and air arrivals. The event generated around $70 million in economic gains, according to industry data.

“Coldplay has changed the game by coming to India,” said Vijay Dewan, managing director of Apeejay Surrendra Park Hotels. “Concerts are going to be very helpful in improving occupancies.”

The momentum is also being supported by the rapid expansion of the live events industry. India’s $5.69 billion event and exhibition market is projected to grow to $9.04 billion by 2031, according to research firm Mordor Intelligence.

Hotel chains are adjusting their strategies accordingly. Lemon Tree Hotels, one of India’s largest mid-priced hospitality brands, is placing greater emphasis on proximity to concert venues and stadiums while scouting locations for new properties.

“It will increasingly become important for everyone in the hotel industry,” said Neelendra Singh, chief executive of Lemon Tree Hotels.

Beyond music events, cricket matches and other major sporting fixtures are also driving sharp spikes in demand that often last several days.

“Every time there is a cricket match — in Ahmedabad, for instance — the spike is phenomenal,” said Nikhil Sharma, managing director and chief operating officer for South Asia at Radisson Hotel Group.

However, some industry executives remain cautious about the long-term impact.

“You need sustained event programming through the year for it to have a meaningful impact on the bottom line,” said Arjun Baljee, president of Royal Orchid Hotels.